Double Gold ETF

DEFINITION of 'Double Gold ETF'

An exchange traded fund that tracks the value of gold and responds to movements in the same manner as an otherwise similar double leveraged ETF. A double gold ETF is one in which the spot value of gold or a basket of gold companies acts as the underlying for the fund. The ETF attempts to deliver price movements equal to double the movements of the underlying gold value.

BREAKING DOWN 'Double Gold ETF'

It is important to note that even though there is a potential for huge profits with this strategy, the risk that can be incurred could also be significant, in that the price could fall and losses could be huge. Double gold ETFs are by no means a unique fund product. There are numerous leveraged ETFs that aim to deliver movements equal to two or more times the movements of their underlyings. Some examples include leveraged ETFs on natural gas and crude oil. These ETFs can also aim to mimic an inverse movement relative to the underlying; such ETFs are known as inverse or bear ETFs.

RELATED TERMS
  1. Reverse Gold ETF

    Exchange traded funds that are designed to trade in a direction ...
  2. Short Gold ETF

    An exchange traded fund that seeks to profit from negative changes ...
  3. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  4. ETF Of ETFs

    An exchange-traded fund (ETF) that tracks other ETFs rather than ...
  5. Inverse ETF

    An exchange-traded fund (ETF) that is constructed by using various ...
  6. Gold Fund

    A mutual fund or exchange-traded fund (ETF) that invests primarily ...
Related Articles
  1. Mutual Funds & ETFs

    The Relationship Between Gold and Gold ETFs

    Here's how the price of gold ETFs corresponds to the price of actual gold.
  2. ETF Center

    The Gold Showdown: ETFs Vs. Futures

    ETFs and gold futures are two ways to diversify into the metals asset class, but there are advantages and disadvantages to both instruments.
  3. Mutual Funds & ETFs

    Gold vs. Gold Miner ETFs: Comparing Shades of Gold (GLD, GDX)

    Compare commodity-based gold ETFs with equity-based gold ETFs to find out which is most likely to provide investors with the best return on investment.
  4. Mutual Funds & ETFs

    Gold Investing: Inverse ETF Vs. Shorting a Stock (GLL, DGLD)

    Discover how to play the short side of gold in your IRA, and learn the advantages and disadvantages of shorting gold shares and buying inverse gold ETFs.
  5. Mutual Funds & ETFs

    GLD: iShares Gold Trust ETF

    Learn about the SPDR Gold Shares ETF, how it tracks the price of gold, and what type of investors may want to hold shares in their portfolios.
  6. Mutual Funds & ETFs

    (GLD, DGL, IAU) 3 Bond ETFs in the Gold Sector

    Find out more about the top ETFs that track the gold sector, such as the SPDR Gold Shares ETF, the PowerShares DB Gold ETF and the iShares Gold Trust ETF.
  7. Mutual Funds & ETFs

    Gold ETFs Vs. Oil ETFs: Which Should I Choose for 2016?

    Discover why making a decision between an oil or a gold ETF may not be as important as the structure and holdings of each type of fund.
  8. Mutual Funds & ETFs

    The 4 Largest Gold ETFs (GLD, IAU)

    Learn what is behind rising gold prices, and discover the top four exchange-traded funds (ETFs) that can be used to gain investment exposure.
  9. Mutual Funds & ETFs

    Investing in Gold: Mutual Funds vs. ETFs (GLD, IAU)

    Find out the difference between gold mutual funds and gold ETFs, and how to determine which is the best gold investment option for you.
  10. Mutual Funds & ETFs

    GGGG: Pure Gold Miners ETF Performance Case Study

    Find out why the Global X Pure Gold Miners ETF barely made it off of the ground, closing before reaching its fourth full year of trading.
RELATED FAQS
  1. How can I invest in gold?

    Investing directly in commodities, such as gold or oil, tends to be more difficult for investors than investing in stocks ... Read Answer >>
  2. Is there an ETF composed of other ETFs?

  3. Are there leveraged ETFs that track the metals and mining sector?

    Understand what a leveraged ETF is, and learn about leveraged ETFs that track the metals and mining sector and are available ... Read Answer >>
  4. For investors, what are the alternatives to owning physical gold?

    Learn some of the primary alternate ways that someone can invest in the gold market besides simply purchasing physical gold ... Read Answer >>
  5. What are the primary factors that drive prices in the gold industry?

    Find out about the factors that drive gold prices, such as interest rates, the stock market, demand and supply, and the value ... Read Answer >>
  6. Do ETFs pay capital gains?

    Learn about exchange-traded funds (ETFs), which can generate capital gains for their shareholders due to occasional and substantial ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center